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Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price
Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product. Total Costs Variable Manufacturing $ 2,350,000 Variable Selling and Administrative 750,000 Plant-level Fixed Overhead 1,200,000 Fixed Selling and Administrative 600,000 Batch-level Fixed Overhead 200,000 Total Investment in Product Line 10,000,000 Expected Sales (units) 20,000 If Johnson determines price so as to receive a desired return on assets of 15%, the price is: Answers could be: $262.50 $364.29 $330.00 $375.00 $306.00
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